Hong Kong stocks dived 1,075.91 points, or 4.84 percent to close at 21,134.5 on Friday amid sell- off triggered by the Dubai debt concerns,

The benchmark Hang Seng Index lost as many as 1,208 points, or 5.4 percent to 21,002 near the end of the afternoon trading and finished the session 1,075.91 points lower on turnover of 107.51 billion HK dollars (13.89 billion US dollars).

Dubai said on Wednesday it would ask creditors of state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring.

Market observers said if the city state should turn out not being unable to pay the debt, many world leading banks will suffer great loss.